To order online, please speak to your account manager

Wondered why the price of everything orange, including both our fresh and long-life juices, has been steadily on the rise?

The Heart of the Issue:

Recent data highlights a concerning trend: the average price of a litre of orange juice has risen by 31% compared to last year. The root cause? A complex mix of adverse weather, disease, and supply dynamics affecting major orange producers, especially in Brazil and southern Europe.

Brazil, the world's leading citrus producer, is grappling with greening disease, compelling farmers to harvest oranges earlier than usual. This premature harvest, aimed at mitigating fruit loss, has led to a disappointing yield for juice conversion. Moreover, the country's major producers are holding back stock due to fears of extreme scarcity, further straining the global supply chain.

Global Production and Market Impact:

The US Department of Agriculture forecasts a 2% decrease in Brazilian orange juice concentrate production for the 2023/24 marketing year. With global production also 10% below the five-year average, orange juice prices have experienced a significant hike. In fact, the cost of Brazilian orange juice concentrate saw a staggering 130.5% increase year-on-year as of the end of January.

Prices have consistently been climbing over the last 12 months. This spike has not only affected businesses but also consumers, who now face higher prices at the checkout from supermarkets who have not been immune to the hike.

Navigating the Crisis

Despite the challenges presented by the current orange juice crisis, efforts are underway to mitigate the impact and provide hope. Notably, Egypt's recent orange exports to the EU have slightly eased supply pressures, offering a competitive alternative in the market.

In response, we’ve taken proactive steps to diversify our offerings. Alongside our long-life orange juices, our selection has expanded to include a variety of other long-life juices such as apple, pineapple, cranberry, and tomato. Our freshly squeezed juice range also remains vibrant, with options including not only orange but also apple, clementine, and carrot. These alternatives not only ensure our customers have access to a variety of quality choices but also offer fantastic flavours and nutritional benefits during a time when diversity in our diets is more important than ever.

As we continue to adapt to the 'orange crisis,' it's evident that both producers and consumers alike are finding ways to navigate these turbulent times, with a notable glimmer of hope emerging from Uruguay. Expecting a 35% increase in citrus exports for the 2024 season thanks to improved weather conditions, Uruguay's outlook adds to the cautious optimism among industry experts. Such developments hint at a potential easing of market pressures, contributing to the prediction of a gradual return to more 'normalish' levels in major orange-growing regions by early 2025. This optimistic forecast encourages resilience and adaptability, pointing towards a brighter future for the industry.

Previous Post Next Post